THE fate of the territory's mammoth Container Terminal 9 project is in the balance following the war of words over the granting of contracts to Jardine Matheson this week.
Despite all the rhetoric from Chinese officials over fairness, openness and equality in awarding franchises it is crystal clear that China simply hates to see lucrative business going into the pockets of the Jardine group.
Officially, Beijing has stuck to three principles on the CT9 project as spelled out by its Foreign Ministry spokesman on Thursday.
First, the consortium should be experienced in container terminal operation if operating rights are granted under private treaty.
Second, the selection of consortium should be made on the basis of fairness, without giving favours to specific groups for non-economic reasons.
Third, the container terminal should maintain competitiveness in terms of its charges and operation in the future.
Chinese diplomats and officials have chosen their words carefully in this, the latest tussle between the two governments.